Oil-price, inflation pass-through: Are there some known, unknowns?

Author's Department

Economics Department

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https://www.dbpia.co.kr/Journal/articleDetail?nodeId=NODE09004233#

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Sarfaraz Ali Shah Syed

Document Type

Research Article

Publication Title

Journal of Economic Research

Publication Date

1-11-2018

Abstract

The study revisits the oil price and inflation nexus in 18 emerging market economies. We bring new evidence by studying this relationship using the disaggregated inflation data, (the headline inflation and the four major inflation sub-groups including core inflation, food inflation, fuel inflation and housing inflation). Using mixed frequency data sampling (MIDAS) regression, the study explains the oil price shock transmission mechanism, where food group plays an important role in translating the immediate incidence of the shock. Our out-of-sample forecasts strongly support the prediction power of MIDAS over VEC model, for headline CPI inflation and CPI subgroups inflation.

First Page

291

Last Page

321

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